UPDATED: Army Orders $467 Million Worth Of Medium Trucks From Oshkosh

Oshkosh Defense [OSK] has won a nearly half-billion-dollar contract to continue making medium tactical trucks for the Army, an extension of ongoing work that an ongoing recompete threatens to take from the company.

The Army Tank Automotive and Armaments Command (TACOM) on Sept. 21 awarded Oshkosh a $467 million modification to the contract it holds to build the Family of Medium Tactical Vehicles (FMTV) variants based on the current A1P2 technical data package.

Medium Tactical Vehicles (MTVs)

Medium Tactical Vehicles (MTVs)

The deal guarantees the eighth, ninth and 10th order-year pricing under the contract. The “administrative modification” authorizes future orders under the FMTV A1P2 contract through Aug. 25, 2019.

Oshkosh Defense also announced that TACOM placed an order for 1,065 FMTV vehicles at a value of $260.1 million under Order Year 8. Oshkosh Defense was first awarded the FMTV contract by the U.S. Army in 2009 and, to date, has delivered more than 35,700 FMTV trucks and trailers.

“The highly successful FMTV A1P2 program is a prime example of Oshkosh partnering with the U.S. Army to deliver high quality vehicles while meeting cost, performance, and schedule objectives,” said Pat Williams, Oshkosh vice president and general manager of Army and Marine Corps programs. “We are pleased to continue our service … in delivering the A1P2 requirements to the U.S. Army and its NATO and International allies.”

There is no guarantee, however, that Oshkosh will remain the incumbent manufacturer of FMTV. The Army, almost by surprise and without a publicly stated motive, in 2016 issued a request for proposals for an upgraded version of the truck – called the A2 – and opened the technical specifications of exiting trucks to competing companies.

May 8 was the deadline for truck manufacturers to respond to the RFP. Contract award is projected for second quarter of fiscal year 2018, according to Col. Dan Furber, the Army’s transportation system project manager.

Several companies jumped on the Army’s competitive RFP, which calls for bidders to validate and produce an upgraded FMTV A2 fleet of vehicles with improved payload, underbody protection, ride quality, mobility, engine power, electronics, diagnostics, and safety enhancements.

The Army plans to award one seven-year firm fixed price and cost-plus fixed fee contract that involves five base order years with two one-year options. In order to maintain the testing schedule, the first FMTV A2 test vehicle must deliver to the Army 450 days after contract award, according to the RFP.

The Army then will order 285 light MTVs in three variants, 2,116 MTV trucks in 13 variants and 23 trailers in three variants. There are 17 existing variants within the FMTV fleet, all built on a common chassis.

Correction: The original headline and article incorrectly stated the FMTV contract was worth $467 billion. It is worth a total $467 million.

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